Personal Loan for Foreigners in Singapore

For foreigners in Singapore who wish to apply for a personal loan, they need to be aware of certain requirements in the application process. Primarily, a foreigner loan may be obtained by individuals who are not citizens in the country where they are presently situated. For instance, those who wish to visit a foreign country or set up a business may apply for a loan in case they run a little low on cash. There are also several institutions that specialize in providing financial support to help foreigners meet their needs. The only thing they must do is to comply with several requirements, which may vary from one financial institution to another.

How to Get Started

If you are planning to apply for a foreigner loan, you should contact the money lender and inquire about their requirements. In order to qualify, you need to submit certain documents that they request from you, and there may be a need for credit check, among several things that the bank may request you to do.
A practical way to begin your application is by comparing at least 3 or 4 companies that offer loans to foreigners. If you look for a legitimate and reputable lending company, you may consider applying for a loan at a bank. However, you should be prepared to undergo a lengthier process, unlike the much simpler procedure that money lenders offer. The ideal thing to do, though, is to make sure that the company is licensed and certified by the Registrar of Money Lenders in Singapore. This way, you can be certain that they implement legal methods of lending money to clients.

Common Foreigner Loan Requirements

Although banks or money lenders have different requirements for loan application, they usually set a minimum income for applicants. For instance, foreigners who have an employment pass must have an average annual salary of $60,000 while permanent residents and Singaporeans only need to earn at least $20,000 yearly. In addition, foreign applicants must be holders of the P1, P2 or Q-type Singapore employment pass. For Q pass-holders, they should have at least a year validity left on their employment pass.
Other requirements include the most recent payslip indicated in Singapore dollar currency, certification of employment, and current income tax notice assessment. However, it is important to note that some banks or lending institutions may provide other requirements depending on their policies for foreign loan applications.

Key Features of a Foreign Loan

Just like any other type of loan, a foreigner loan accumulates an interest. In fact, this loan type usually attracts a much higher interest rate, as compared to standard loans. The reason for this is the lack of collateral that foreigners put up, so they are considered a high risk and are given a higher loan interest. Nevertheless, those who are planning to apply for foreigner loans should compare various lending companies, so they could find one that offers the most reasonable interest rate.

Another important thing to know about foreigner loans is that they come with a shorter repayment period than standard loans. This is particularly true among foreigners who plan to stay in the country for only a short period. In most instances, the term depends on the amount of money you have loaned. If you have borrowed a smaller amount of money, you would have to pay it back after a few months or so. Hence, if you wish to take out a loan, you should be prepared to pay back the amount within a shorter period.

Resource  http://goarticles.com/article/Personal-Loan-for-Foreigners-in-Singapore-Tips-on-How-to-Apply-for-One/7997946/